ASX200 Stocks in Spotlight: How Wesfarmers (ASX:WES) and Flight Centre (ASX:FLT) Stand on Valuation Grounds

June 19, 2025 11:45 AM AEST | By Team Kalkine Media

Google News:

ASX200 Stocks in Spotlight: How Wesfarmers (ASX:WES) and Flight Centre (ASX:FLT) Stand on Valuation Grounds — Image source: shutterstock

Recent News

Flight Centre (ASX:FLT): Is It Flying Under the Radar in 2025?

Microsoft Restructures Workforce as AI Focus Drives ASX200 and Global...

Antipa Minerals Eyes Resource Expansion Amid Paterson Province Boom

Surefire’s Drilling Push at Yidby Gold Project Aims to Unlock Value in...

Highlights

WES shares up over 17% YTD with consistent dividends

FLT trading well below 5-year average price-sales ratio

Simple valuation tools show contrasting company strengths

As part of the ASX200 stocks cohort, Wesfarmers (WES) and Flight Centre Travel Group (FLT) continue to draw attention for their performance and unique business models in 2025. Both companies operate in entirely different sectors, yet their valuations offer intriguing insights for those monitoring movements in the broader Australian share market.

Wesfarmers (ASX:WES): Stability Through Diversification

Wesfarmers, headquartered in Perth, is a diversified conglomerate that owns or holds major stakes in several well-known Australian brands. Its portfolio includes Bunnings, Kmart, Target, Officeworks, Priceline Pharmacy, and more, making it a cornerstone among blue-chip ASX200 stocks. The business model focuses on acquiring strong assets, enhancing them, and eventually realising returns through strategic exits. A notable example of this was the acquisition and later demerger of Coles Group.

As of mid-2025, the WES share price has gained 17.3% since January, supported by performance from Bunnings, which contributes over half of its operating profit. A quick way to assess its valuation is through its dividend yield. The current yield sits at 2.36%, below its 5-year average of 3.36%, hinting at a possible share price rise or a shift in dividend policy. Importantly, the latest annual dividend exceeds the 3-year average, suggesting recent dividend growth.

Flight Centre (ASX:FLT): Global Reach and Grounded Value

Flight Centre stands out in the travel sector with operations in over 80 countries. While digital transformation dominates the industry, Flight Centre maintains a strong brick-and-mortar presence, offering face-to-face consultations and personalised travel experiences. Its reach provides access to exclusive deals that continue to attract a loyal customer base.

FLT’s valuation narrative is different from that of WES. Being more of a growth-oriented company, a useful metric to assess its position is the price-to-sales (P/S) ratio. Currently, FLT trades at a P/S ratio of 1.03x, substantially below its 5-year average of 3.42x. This significant difference may reflect shifting investor sentiment or potential opportunities depending on performance expectations.

By applying simple valuation tools like dividend yield for Wesfarmers and price-sales ratio for Flight Centre, it becomes easier to get a quick snapshot of where these ASX200 stocks stand in the current market landscape.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.